Nacco purchase gives CIT head of steam in European rail leasing business

US asset financing company CIT Group has made a first move into the European wagon leasing market with the purchase of industry leader Nacco SAS, in a bid to grow its rail leasing business globally.

Nacco has its headquarters in Paris and subsidiaries in Hamburg and Crewe. It owns more than 9,500 wagons, which are leased to more than 150 customers in 16 countries.

Dan DiStefano, senior vice president and general manager, locomotives for CIT Rail, has been appointed president of the company, which will now be known as Nacco, A CIT Company.

“George Cashman, president of CIT Rail, and his team have been studying the European market for a number of years and we are very pleased with this acquisition”, said Jeff Knittel (pictured above), president of CIT Transportation & International Finance. “It enables us to expand our operating platform outside of North America and offers us a foundation as we look to utilise our best-in-class leasing capabilities throughout Europe.”

Nacco’s railcar portfolio consists of tank cars, flat cars, gondolas and hopper cars that service major shippers in the petroleum, chemical and petrochemical industries, as well as those moving fertilizers, minerals, timber, steel, aggregates and agricultural products.

“Nacco is known for its strong customer relationships. It has built a reputation based on its expertise in the railcar leasing business, a deep understanding of the European market and the ability to meet the needs of its customers. We will look to build upon its exceptional service and reputation in the marketplace,” Knittel said.

Deutsche Bank Securities acted as financial advisor to CIT on the transaction, which was for an undisclosed sum.